Stocks Extend Rally as AI Bulls Wait for Palantir: Markets Wrap
(Bloomberg) — US stocks are set to extend their rally, with Palantir Technologies Inc. due to report earnings, as investors turn to private data this week for direction on interest rates.
S&P 500 futures rose 0.4%, signaling a firm start to November after a six-month rally in the US benchmark. Palantir, one of this year’s biggest beneficiaries of the artificial-intelligence boom with a 165% gain, was poised to add to its advance ahead of results due after the close.
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European and Asian equities also rose. Global bonds were little changed, with the 10-year US Treasury yield at 4.09%. Gold erased early gains as haven demand faded while the dollar held steady.
The rally in equities is continuing as markets brush aside concerns over trade wars and stretched valuations, with earnings from tech heavyweights fueling optimism over artificial intelligence. Private data amid a government shutdown — poised to become the longest in history — will come into focus after Fed Chair Jerome Powell cautioned against assuming a December cut.
“Earnings growth is there, the momentum is there and on a macro level, although it’s still very volatile, things are moving in the right direction,” said Andrea Gabellone, head of global equities at KBC Global Services. “I don’t see any reason for the rally not to consolidate and even go higher.”
Labor market clues may emerge from the Institute for Supply Management’s manufacturing and services surveys due Monday and Wednesday, followed by ADP data that’s expected to show a modest rise in October private payrolls. On Thursday, Challenger, Gray & Christmas will report announced job cuts.
Traders will also parse comments from a list of Fed speakers, with Governor Lisa Cook due to discuss the economy and monetary policy at an event on Monday. Alberto Musalem, John Williams and Stephen Miran are slated to speak at separate events later in the week.
While a third rate cut for 2025 in December was previously seen as a done deal, Powell’s caution and a more hawkish tone from other Fed officials prompted traders to pare back bets on further easing. Money markets now price about a 60% chance of a cut next month and around two quarter-point reductions by the time Powell’s term ends in May.
“There was some disappointment following the words of the Federal Reserve chairman, but the market will digest this and reposition,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM. “Further developments in the labor market will then take center stage.”
Corporate News:
Alphabet Inc. is returning to Europe’s debt market for the second time this year with a multi-tranche sale, as the Google parent raises funds to support record capital spending on artificial intelligence and cloud infrastructure. Davide Campari-Milano NV shares fell after Italian prosecutors on Friday ordered the seizure of around €1.3 billion ($1.5 billion) in shares from the holding company that controls the drinks maker. Berkshire Hathaway Inc.’s cash pile soared to $381.7 billion in the third quarter, a fresh record, and operating earnings surged 34% at Chief Executive Officer Warren Buffett’s conglomerate. BBVA SA is looking to raise Additional Tier 1 capital for the first time since its lost pursuit for country peer Banco Sabadell SA was voted down by shareholders last month. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.4% as of 5:50 a.m. New York time Nasdaq 100 futures rose 0.6% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 rose 0.5% The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.2% to $1.1515 The British pound fell 0.2% to $1.3130 The Japanese yen fell 0.1% to 154.17 per dollar Cryptocurrencies
Bitcoin fell 2.5% to $107,219.83 Ether fell 4.1% to $3,703.14 Bonds
The yield on 10-year Treasuries was little changed at 4.09% Germany’s 10-year yield advanced one basis point to 2.65% Britain’s 10-year yield was little changed at 4.41% Commodities
West Texas Intermediate crude rose 0.3% to $61.19 a barrel Spot gold fell 0.2% to $3,996.42 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from James Hirai and Macarena Muñoz.
©2025 Bloomberg L.P.
